Question

    Using the following data, calculate the Economic Order

    Quantity (EOQ): Monthly consumption: 4000 kg Cost per kg of raw materials: ₹2 Cost per order: ₹60 Storage cost: 15% of the average inventory Which of the following is EOQ?
    A 4,129 kg Correct Answer Incorrect Answer
    B 4,228 kg Correct Answer Incorrect Answer
    C 4382 kg Correct Answer Incorrect Answer
    D 4495 kg Correct Answer Incorrect Answer
    E 5287 kg Correct Answer Incorrect Answer

    Solution

    Annual Demand (D) = 4000*12 = 48000 Kg  S = 60 H = 2*15% = 0.30

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